Economic Dimension in Iran’s Foreign Policy Towards Iraq: 2003–2020

Abstract

This study aims to explain the role of the economic dimension of Iran’s foreign policy toward Iraq between 2003 and 2020. The study shows that after the U.S. occupation of Iraq in 2003, there were fundamental shifts in the structure of Iraqi power and identity and a change in geopolitics in the Middle East. The structure of political actors in power has shifted from Arab Sunni-Shiite to Shiite-Kurdish, and this has led to the transformation of Iraqi identity from an Arab-Sunni political identity to Iranian Shiite identity, providing Iran with an opportunity for influence and strengthening its regional role in Iraq. The study has concluded that since 2003, Iran has been able to expand its dominance over the Iraqi regime and the country’s economy through its firm policy in Iraq by signing agreements and contracts in various productive sectors that guarantee a considerable share of Iraq’s sovereign wealth.